Dubai gold rates edge down amid Fed rate hike fears

The bullion failed to recover its previous losses even as the US dollar weakened and the Asian shares tumbled to multi-year lows. Spot gold dropped 1.2 per cent on Monday and stood at $1,132.20 on Tuesday morning, according to a Reuters report.

In Dubai, the price for 24-carat gold dropped from Dh136.50 to Dh136.25, while 22K edged lower from Dh129.75 to Dh129.50. The price for 21K and 18K gold stood at Dh124.25 and Dh107.50, respectively.

Nearly six in ten (57 per cent) of retail investors and market professionals polled last week had said that they expect the gold price to edge higher this week.

The bullion, however, dropped on Friday following comments by Federal Reserve head Janet Yellen that the United States central bank would likely increase the interest rates before the end of 2015.

Shares in Asia dropped to their lowest in more than three years, while the US dollar weakened on Tuesday.